South Koreans unintimidated by threats of ban

Jan 20, 2018

The tale of the crypto has remained in the eye of storm lately. The risks of a potential ban on exchange and trade of cryptocurrency might have spooked away potential investors, but the veterans of coin market are unfazed by threats of the ban.

When the bitcoin value soared high in 2017, South Korea had all the valid reasons to feel elated as they account for the 20 percent trade of the crypto currency let alone. According to a study estimate, One-third of salaried Koreans had invested in the crypto market and 80 percent profited from the investments.

Although the crypto currency market lost about $200 billion this week, the investors are still confident of its bright future. A similar drop in its value was seen when China went on to shut down all the local exchanges in September, making Bitcoin lose its amount up to 50 percent. But its prices rebounded soon eight-fold making its cost $20,000.

A South Korean student says, 'In case the government shuts down all local exchanges, investors can go abroad to open an account there. ''I can ask my friends who study abroad or travel there myself; it is not a big problem.'

A ban in South Korea might have adverse effects, but the anonymity of buyers and sellers and the ability to move the digital assets anywhere in the world with a click makes imposing restrictions harder.

Places like Hong Kong, Singapore are liberal towards the maintenance of regulations, while Japan has time and again vocally supported the vast ecosystem of companies and investors who have spent a significant chunk in selling and buying of digital assets. Germany has called the national regulations in vain.

200,000 South Koreans have signed a presidential petition to voice their opinion against the proposed crackdown of virtual currency. South Korean President Moon-Jae-in has cautioned his cabinet against sharing their personal views before the government has reached a position on crypto currency.

Holders can open bank accounts in countries that have not banned Bitcoin; they can join a local centralized exchange to trade crypto currencies for fiat. 'I hold everything in my thumb-sized wallet. I hold copies of my private keys in a safe. I have accounts on four exchanges on three continents. If any government wants my money, good luck to them,' said a Hong Kong-based investor.

Government plans might have ruffled feathers of the potential investors, but the old hands have managed a way out to emerge harmless from the market-rattling chaos.

Bitcoins have gained 10.37 percent and are trading at $12,736.10 with a market dominance of 34.8 percent as on Saturday, 12:40 IST.